In an inspiring journey bridging two worlds, Rohit Sharma once thrived as a software engineer in a Fortune 500 company in the United States. Yet, driven by a yearning to make an impact closer to home, he left his coveted career and moved back to India to join an emerging unicorn startup in Bengaluru. Today, Rohit leads a key innovation team, credited with scaling the company’s tech infrastructure and expanding its user base globally. His story encapsulates a larger narrative: India’s startup ecosystem is evolving rapidly, creating pathways for professionals, students, and investors alike to seize unparalleled opportunities.
Two Timelines, One Vision: Life in the US vs. India’s Startup Boom
In the US, Rohit witnessed a mature tech culture with vast resources but often met with rigidity and defined corporate ladders. Access to capital and streamlined processes were advantages, yet the innovation pace was measured, bound by established frameworks. “Opportunities existed, but the thrill was limited by scale and competition,” he reflects.
Contrast this with India, where the startup landscape is vibrant, dynamic, and increasingly supportive. Rohit highlights, “Here, the excitement is palpable. The government’s initiatives, infrastructure improvements, and investor influx have created a fertile ground for innovation.” India now boasts over 159,000 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as of January 2025, making it the world’s third-largest startup ecosystem after the US and China. With more than 100 unicorns across sectors like fintech, edtech, and healthtech, India’s startup culture thrives on youthful energy and digital transformation.
What Makes the Indian System Work?
Rohit credits several ecosystem enablers that facilitated his transition and growth here:
- Government support: Progressive policies like Startup India, tax benefits, and easier compliance mechanisms help startups scale rapidly.
- Access to capital: Indian startups raised over $12 billion in funding in the first nine months of 2025 alone, reflecting strong investor confidence both domestic and international.
- Talent availability: India’s large pool of tech professionals and engineers actively feeds startups’ talent demands.
- Digital infrastructure: Rapid internet penetration and smartphone adoption fuel a growing consumer base eager for innovative digital solutions.
- Cultural acceptance: Entrepreneurship is increasingly seen as a viable career path, supported by incubators, accelerators, and growing mentorship networks.
Despite these positives, Rohit is candid about the challenges. “Infrastructure outside major metros can be patchy, and regulatory complexities still slow some initiatives,” he admits. Moreover, while consumer-focused startups dominate, deeper investments in hard tech, deep-tech innovations, and global market scaling remain areas for growth.
Ecosystem Progress Despite Setbacks
The Indian startup ecosystem is no stranger to setbacks. The past year has seen a significant correction, reflecting the realities of growth and sustainability. According to corrected data from Tracxn, the number of startups shutting down in 2025 (till October) fell sharply to around 724, compared to nearly 3,903 closures in 2024. This steep decline in shutdowns signals a maturing ecosystem where founders and investors are more cautious about making sustainable choices rather than pursuing fast-paced but unsustainable hypergrowth. It marks a shift from the “growth-at-all-costs” mindset towards a measured approach emphasizing profitability, product differentiation, and validated customer demand.
However, other reports indicate a broader challenge with some data showing over 11,000 startups shutting down in 2025, a 30% increase from 2024, highlighting the complex and evolving nature of risk in the ecosystem. The discrepancy in numbers often stems from definitions of startup activity and closure. What is clear is that sectors that surged during the pandemic, like edtech, fintech, and healthtech, continue to face pressure as normalization affects user engagement and funding availability.
In response to these challenges, regulatory reforms are playing a key role. Changes around data privacy, ESOP taxation, and compliance are creating a more transparent and investor-friendly climate, though they add operational complexities. Government efforts to boost regional inclusivity are transforming the demographic footprint of startups, fostering growth in Tier 2 and Tier 3 cities beyond the traditional hubs of Bengaluru, Mumbai, and Delhi. This decentralization supports a wider innovation base and opens new markets for entrepreneurial ventures.
Overall, while the ecosystem has faced significant turbulence, the reduced number of closures reflects a transition toward greater operational discipline and ecosystem resilience. The system is learning to prioritize sustainable growth, stronger business fundamentals, and efficient capital use, laying the groundwork for a stronger, more mature startup environment in the years ahead.
Numbers Do Tell A Story
- India houses the third-largest startup ecosystem with 159,000+ DPIIT-recognized startups.
- Over 100 unicorns operate in diverse sectors, with total startup funding exceeding $17.5 billion in 2025 to date.
- Government-backed guarantees funded ₹604 crore in loans for startups, including women-led enterprises, boosting inclusivity.
- Startups integrate advanced technologies like AI, reflecting a tech-savvy, mature ecosystem.nextias
- The annual growth rate of India’s startup ecosystem hovers around 12-15%, emphasizing steady momentum.
Looking Forward: The Indian Panorama’s Perspective
At The Indian Panorama, we see India’s startup story as a powerful testament to resilience, innovation, and bold ambition. For the Indian diaspora-students pursuing education, professionals on H1B visas, entrepreneurs, and investors-this ecosystem offers pathways not just to careers, but to leadership in a transforming global economy.
While challenges linger, the foundations laid by government initiatives, private enterprise, and the incredible energy of millions of entrepreneurs signal a future that is not only promising but transformative. We encourage our readers to stay engaged with Indian startup news through our platform to witness firsthand the evolution of new technologies, emerging markets, and inspiring success stories like Rohit’s.
Together, us at The Indian Panorama believe that understanding these shifts empowers the diaspora to make informed decisions, contribute meaningfully, and celebrate India’s ascent on the world stage. Join us as we continue to track this exciting journey and bring you the latest, most insightful coverage.
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